Correlation Between American Hotel and Carlin Gold
Can any of the company-specific risk be diversified away by investing in both American Hotel and Carlin Gold at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining American Hotel and Carlin Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Hotel Income and Carlin Gold, you can compare the effects of market volatilities on American Hotel and Carlin Gold and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in American Hotel with a short position of Carlin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Hotel and Carlin Gold.
Diversification Opportunities for American Hotel and Carlin Gold
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Carlin is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding American Hotel Income and Carlin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlin Gold and American Hotel is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on American Hotel Income are associated (or correlated) with Carlin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlin Gold has no effect on the direction of American Hotel i.e., American Hotel and Carlin Gold go up and down completely randomly.
Pair Corralation between American Hotel and Carlin Gold
If you would invest 18.00 in Carlin Gold on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Carlin Gold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Hotel Income vs. Carlin Gold
Performance |
| Timeline |
| American Hotel Income |
| Carlin Gold |
American Hotel and Carlin Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Hotel and Carlin Gold
The main advantage of trading using opposite American Hotel and Carlin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Hotel position performs unexpectedly, Carlin Gold can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Carlin Gold will offset losses from the drop in Carlin Gold's long position.| American Hotel vs. Algonquin Power Utilities | American Hotel vs. Electra Battery Materials | American Hotel vs. Brookfield Office Properties | American Hotel vs. HOME DEPOT CDR |
| Carlin Gold vs. Primaris Retail RE | Carlin Gold vs. Diversified Royalty Corp | Carlin Gold vs. CNJ Capital Investments | Carlin Gold vs. Metalero Mining Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
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